Reference no: EM132104069
Apple needs to increase its market share for iPhone 8
A situation analysis may also be known as an environmental analysis. Conduct an environmental analysis including the external environment, customer environment, and internal organizational environment.
A. External Environment Analysis
In this section, identify/describe all external forces for change that might affect the company, its future, and the future of its industry. Identify the external realities upon which your plan will be based. What are the competitive, technological, economic, political/legal/regulatory, societal/lifestyle/cultural, market, buyer behavior, channel of distribution, and other industry trends that translate into external opportunities and threats? Explicitly state how each of these forces can impact your company, your charge, and the outcomes you wish to accomplish. That is, do not just list these forces; relate them to the task at hand.
Keep in mind that tables and figures cannot stand alone in any marketing plan. In other words, if you want to use tables and figures, use them as support tools to illustrate the points you are trying to make in your written text.
1. Industry Analysis: What is the current situation in the industry? This description includes the size of the particular industry, trends in the industry, the industry outlook (expanding, stagnant, or contracting), success factors and failures of the industry, and so forth. Are these trends and developments likely to affect your charge? How?
2. Competitive Analysis: There are three major types of competitive forces. Brand competitors offer similar products with similar benefits and prices (e.g., monetary cost, time, effort, etc.), and serve/target the same customers. Product competitors offer products that compete in the same product class but have different features, benefits and price. Generic competitors offer products that satisfy the same need or solve the problem, but in a different way.
For example, assume that the brand in question is Apple iPad 4 and your charge is to come up with a marketing plan of how to promote the iPad 4. In your Product Statement you will have already talked about the iPad. Brand competitors in this case would be Samsung Galaxy, Motorola Xoom, Toshiba Excite, Lenovo IdeaPad, and so on. Product competitors could include Hewlett-Packard,Sony, and Dell computers. Generic competitors of iPad could include Regal Theatres, Cox Cable and so on, which satisfy consumers’ entertainment needs.
When discussing the competitive forces, focus on the brand and product competitors and describe these competitors in more detail. How big are they? What is their market share (in comparison to that of your company)? What is their income? How is the income derived? How do they spend their moneys? What are their strengths and weaknesses? How do they pose a threat to your company? What attracts consumers to their products? A detailed description of these competitors will aid your future SWOT and Issues analyses, and will give you ideas about target market and implementation.
3. Technology not only refers to the new types of products such as computers and digital products but also means the processes by which tasks are accomplished. This section examines how changes in technology impact customers’ lives and needs and how marketers respond to their needs. Are these trends and developments likely to affect your charge? How?
4. The Economic Situation looks at the stability and growth of the market in which the firm operates—for example, country, region, state, or local area. This section may examine inflation, employment, and income levels; taxes; and consumer confidence as they impact the company and the charge of the marketing plan. Are these trends and developments likely to affect your charge? How?
5. Political Trends, Legal Trends, and Regulatory Forces: This section examines how governmental regulations may affect the company and its charge. It also looks at the company’s relationships with elected officials. Is the current administration, Congress, state legislature, county or city government likely to sponsor laws or regulatory changes that will affect the company and the charge, either favorably or negatively? Do recent court decisions have an impact on the operating environment? Do they impact how you will have to carry out your charge?
6. Cultural Trends may have a profound impact on how customers respond to the company’s offering. Examples of lifestyle trends include less leisure time; cocooning; focus on health, exercise, and nutrition; and less concern with cleanliness. Demographic trends include aging baby boomers, new boomers (Generation Y), a rise in single-person and single-parent households, more women who work, and increasing population diversity. Some changes in cultural values include less conspicuous consumption, value orientation (quality/price), environmental concern, less tolerance of public smoking, more tolerance of varying lifestyles, and giving back to the community. Are these trends and developments likely to affect your charge? How?